Unlisted Shares

One-stop platform for travelers: Ixigo offers a diverse range of products and services for travelers, focusing on online and mobile travel booking. It offers Travel Bookings, Travel Planning Tools and other additional services like Travel Insurance and Recharge & Bill Payments.   

Revenue Growth: The company has witnessed a healthy growth in Revenue, escalating from ₹380 crore in FY22 to ₹501.25 crore in FY23, reflecting a growth rate of 32.05%. The company's four-year Compound Annual Growth Rate (CAGR) stands at 87.65%. Over the last 4 years, Revenue has grown at a yearly rate of 87.7% vs the industry avg of -19.26% (Average of industry of last 5 years "FY19-FY23")

Company's Stellar Performance Paves the Way for IPO: Last year, the company was EBITDA negative, making it ineligible for an IPO. However, in FY23, the company's remarkable performance has opened doors for an IPO. It is anticipated that the company will file the Draft Red Herring Prospectus (DRHP) by the last week of January 2024, and following approval from SEBI, the IPO is expected to be launched by the end of March 2024.

Investment Thesis: Applying an industry revenue multiple of 13.09 suggests a fair company valuation of approximately Rs. 180 per share. The company has showcased an impressive share performance, experiencing a substantial 52% surge within a month, rising from ₹95 to the current price. This performance resonates with the expected valuation of the forthcoming IPO in January 2024, projected at Rs. 180 per share.  SAIF Partners India IV Limited, SCI Investments V, Gamnat Pte. Ltd, and Micromax Informatics Ltd are notable investors with substantial stakes in the company.

Traction: 

• 𝐌𝐚𝐫𝐠𝐢𝐧𝐬: Its ROCE and EBITDA margins improved to 6% and 7% respectively in FY23. On a unit level, it spent Rs 0.97 to earn a rupee of operating revenue.
  
• 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐁𝐚𝐬𝐞: As of March 2023, the ixigo group had crossed 66 million monthly active users across its platforms, ConfirmTkt, and AbhiBus. The travel platform has over 6 million daily active users and said it is growing at a rate of more than 8 million downloads a month, with the running rate being 50 million bookings yearly.
  
• 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: It’s worth noting that Ixigo acquired ConfirmTkt in February 2021 and the acquisition seems to have worked well for the Gurugram-based company. After this deal, Ixigo emerged as the largest third-party train booking platform. The booking of train tickets was the highest revenue grosser with 59% followed by flight and bus which contributed 20% and 19% respectively to the scale in FY23.
  
• Ixigo Fuels Inter-City Electric Travel with FreshBus Investment: Ixigo has indeed invested in FreshBus, the Bengaluru-based electric inter-city bus service provider. In February 2023, Ixigo provided Rs 26 crore in seed funding to FreshBus. This was a strategic investment to support the launch of FreshBus's inter-city electric bus services across India.